Here’s a cut/paste from the TSP announcement about a change for catch-up contributions:
Catch-up contributions will soon get easier
Starting in January 2021, we will make the catch-up process easier: if you’re turning 50 or older, you’ll no longer need to make two separate elections each year in order to take advantage of catch-up contributions.
Instead, your contributions will automatically count toward the IRS catch-up limit if you meet the elective deferral limit and keep saving. If you’re eligible for an agency or service match, contributions spilling over toward the catch-up limit will qualify for the match on up to 5% of your salary. Your election will carry over each year unless you submit a new election.
For 2020 catch-up contributions, you do still need to complete the current process and make a separate election. Check current contribution limits to make sure you’re on track this year.
Here are this week’s articles:
- Diagnosing Debt: Demystifying Interest Rates & Loan Terminology
- Does Dry Powder Work?
- Follow the Fed
- Investors Need to Become More Comfortable With Volatility in Their Portfolios
- What If The 4% Rule For Retirement Withdrawals is Now the 5% Rule?
- When You Have Enough, It’s Time to Help Others
- Why Own Bonds When Rates are So Low?